Overview Above-the-line deductions for qualified tips and qualified overtime While we do not often report on proposed legislation, two provisions in the bill the House Ways and Means voted out of Committee on May 14th (and which was voted out of the House Budget Committee on May 18th) are worthy of attention, as they reflect how two of President Trumpâs campaign promises are beginning to take shape. Sections 110101 and 110102 of the Ways and Means…
On April 11, 2025, the US Securities Commissionâs Division of Corporation Finance issued six new Compliance and Disclosure Interpretations (CDIs) that provide guidance on the disclosures required when a US listed issuer has an accounting restatement that may trigger a clawback of âerroneously-awarded compensationâ under Exchange Act Rule 10D-1 and the corresponding listing standards. See Exchange Act Forms CDIs 104.20 â 104.25, as linked below. When to Mark Check Boxes on Annual Reports The new…
On January 14, 2025, the Internal Revenue Service (âIRSâ) published proposed regulations (the âProposed Regulationsâ) under Section 162(m) of the Internal Revenue Code (âCodeâ), which generally limits publicly held companies to a $1 million annual tax deduction for compensation paid to âcovered employeesâ in a taxable year. The Proposed Regulations implement amendments made to Code Section 162(m) by the American Rescue Plan Act of 2021 (the âARPAâ) to expand the definition of âcovered employeeâ to…
The wildfires in Los Angeles County have wreaked devastation in the area, with thousands of homes and other structures, vehicles, and more destroyed by the worst wildfire in L.A. history. In response, on January 8, 2025, President Biden approved a Major Disaster declaration for California, allowing impacted communities and survivors to immediately access funds and resources to jumpstart their recovery. As it stands, impacted individuals are in need of funds, housing, food, clothing, medical care,…
Institutional Shareholder Services (ISS) has released its executive compensation and equity plan policy updates for the 2025 proxy season, reflecting its approach to determining its proxy voting recommendations on say on pay and equity plan proposals for shareholder meetings held on or after February 1, 2025. The updates to ISSâs existing policies are fairly light overall, but it is notable that there will be heightened scrutiny of the design and disclosure of performance-vesting equity awards,…
News headlines reinforce what every business knows â that there are business reasons for providing security to C-suite executives. Those executives are seen as the face of the company and often bear the brunt of the publicâs gripes against a company. Prominent business leaders, such as business executives, are often the targets of threats due to their affiliation with the company and are in need of protection as a result. Ensuring their safety is often…
On November 7, 2024, for the first time, the Internal Revenue Service (IRS) has made available a form on which elections under Section 83(b) of the Internal Revenue Code may be made. This new Form 15620 provides a standardized method for elections and should streamline the process of making an 83(b) election. However, the new form is not required to be used, and taxpayers may continue to use their own form of election, provided it…
As Donald Trump prepares to take office as the 47th United States president, we outline the policy positions we expect to see across five key areas that will have significant implications for business. Trump has pledged to lower taxes, cut regulation and impose new tariffs on imported goods. The ability of the new President to implement his plans will be heavily impacted by the makeup of Congress. With President-elect Trumpâs party controlling the Senate, and…
Two more federal Circuit Courts have weighed in on whether mandatory arbitration provisions with class action waivers are enforceable under the U.S. Employee Retirement Income Security Act of 1974, as amended (âERISAâ). With recent rulings in Cedeno v. Sasson, 100 F.4th 386 (2d Cir. 2024) and Parker v Tenneco, 2024 WL 3873409 (6th Cir. Aug 1, 2024), the Second and Sixth Circuits now join the Third, Seventh, and Tenth Circuits in holding that arbitration provisions…
Earlier this year, the Internal Revenue Service (“IRS”) announced it would be using advanced analytic techniques and additional funding to audit tax compliance by businesses when their business aircraft are used for personal reasons by executives. The IRS’s Large Business and International Division also added a “Business Aircraft Campaign” to its list of compliance campaigns. This focus by the IRS appears to have triggered calls for it to revisit the manner in which personal use…